Europe's Markets: A Gentle Start to the Week

Glencore, a big name in mining, saw its shares rise by about 2% early in the London trading day. The most significant stock market index in Europe, the Stoxx 600, was up by 0. 3% shortly after opening. Most sectors and all major stock exchanges were showing gains. Mining stocks led the way, up over 1% after news that Glencore had talked with Rio Tinto about a possible merger. However, these talks are no longer happening. This positive start set Europe up for a weekly gain, following a strong trading session on Wednesday. Investors were surprised by U. K. data showing that price increases had slowed more than expected. Earlier in the week, markets worldwide reacted positively to lower-than-expected inflation data from the U. S. In the U. K. , more data showed that the economy grew by 0. 1% in November, ending a two-month decline. But this growth wasn't as much as expected. December's retail sales also dropped by 0. 3%, contradicting predictions of a 0. 4% rise. This data has boosted hopes that the Bank of England will cut interest rates again in February. Traders are mostly expecting a 0. 25% cut. On the same day, the European Commission will publish final euro area inflation figures. Previous data showed inflation hit 2. 4% in December, the third straight monthly rise. Meanwhile, Spain, one of Europe's fastest-growing economies, will release import and export data on Friday morning. Overnight, Asian stocks were mixed in response to China's higher-than-expected fourth-quarter GDP. U. S. stock futures also showed gains, hinting at a positive end to the week despite recent ups and downs.